RTX CORP (RTX) Stock Fundamental Analysis
NYSE:RTX - New York Stock Exchange, Inc. - US75513E1010 - Common Stock - Currency: USD
Overall RTX gets a fundamental rating of 4 out of 10. We evaluated RTX against 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of RTX while its profitability can be described as average. RTX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
RTX had positive earnings in 4 of the past 5 years.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RTX (2.93%) is comparable to the rest of the industry.
The Return On Equity of RTX (7.94%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.88%, RTX is in line with its industry, outperforming 47.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RTX is below the industry average of 8.00%.
The 3 year average ROIC (3.68%) for RTX is below the current ROIC(4.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 7.94% | ||
| ROIC | 4.88% |
ROA(3y)2.73%
ROA(5y)1.68%
ROE(3y)6.81%
ROE(5y)4.17%
ROIC(3y)3.68%
ROIC(5y)3.17%
1.3 Margins
RTX has a Profit Margin (5.91%) which is comparable to the rest of the industry.
RTX's Profit Margin has declined in the last couple of years.
RTX has a Operating Margin of 7.97%. This is comparable to the rest of the industry: RTX outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
The Gross Margin of RTX (19.09%) is worse than 63.49% of its industry peers.
In the last couple of years the Gross Margin of RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.97% | ||
| PM (TTM) | 5.91% | ||
| GM | 19.09% |
OM growth 3Y-2.13%
OM growth 5Y-7.15%
PM growth 3Y-0.49%
PM growth 5Y-13.5%
GM growth 3Y-0.54%
GM growth 5Y-4.24%
2. Health
2.1 Basic Checks
RTX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RTX has more shares outstanding
The number of shares outstanding for RTX has been increased compared to 5 years ago.
The debt/assets ratio for RTX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
RTX's Altman-Z score of 2.10 is on the low side compared to the rest of the industry. RTX is outperformed by 65.08% of its industry peers.
RTX has a debt to FCF ratio of 10.52. This is a negative value and a sign of low solvency as RTX would need 10.52 years to pay back of all of its debts.
RTX's Debt to FCF ratio of 10.52 is in line compared to the rest of the industry. RTX outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that RTX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, RTX is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 10.52 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.54
WACC9%
2.3 Liquidity
A Current Ratio of 0.99 indicates that RTX may have some problems paying its short term obligations.
With a Current ratio value of 0.99, RTX is not doing good in the industry: 87.30% of the companies in the same industry are doing better.
RTX has a Quick Ratio of 0.99. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
RTX's Quick ratio of 0.74 is on the low side compared to the rest of the industry. RTX is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
RTX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.02% yearly.
The Revenue has grown by 17.15% in the past year. This is quite good.
Measured over the past years, RTX shows a quite strong growth in Revenue. The Revenue has been growing by 12.23% on average per year.
EPS 1Y (TTM)13.66%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%19.38%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.07%
3.2 Future
Based on estimates for the next years, RTX will show a small growth in Earnings Per Share. The EPS will grow by 5.82% on average per year.
Based on estimates for the next years, RTX will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
EPS Next Y7.88%
EPS Next 2Y9.48%
EPS Next 3Y9.6%
EPS Next 5Y5.82%
Revenue Next Year5.69%
Revenue Next 2Y5.72%
Revenue Next 3Y5.84%
Revenue Next 5Y4.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.74 indicates a rather expensive valuation of RTX.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RTX to the average of the S&P500 Index (29.01), we can say RTX is valued slightly cheaper.
RTX is valuated rather expensively with a Price/Forward Earnings ratio of 21.08.
Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, RTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
RTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RTX is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.32 | ||
| EV/EBITDA | 19.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RTX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y9.48%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 1.45, RTX pays a better dividend. On top of this RTX pays more dividend than 90.48% of the companies listed in the same industry.
RTX's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of RTX decreases each year by -3.09%.
RTX has paid a dividend for at least 10 years, which is a reliable track record.
RTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.09%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
RTX pays out 67.39% of its income as dividend. This is not a sustainable payout ratio.
DP67.39%
EPS Next 2Y9.48%
EPS Next 3Y9.6%
130.52
+3.21 (+2.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners81.8%
Inst Owner Change2.43%
Ins Owners0.03%
Ins Owner Change3.87%
Market Cap173.87B
Analysts71.43
Price Target140.2 (7.42%)
Short Float %0.84%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.42
Dividend Growth(5Y)-3.09%
DP67.39%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.89%
Min EPS beat(2)7.07%
Max EPS beat(2)10.7%
EPS beat(4)4
Avg EPS beat(4)8.33%
Min EPS beat(4)7.07%
Max EPS beat(4)10.7%
EPS beat(8)8
Avg EPS beat(8)6.72%
EPS beat(12)12
Avg EPS beat(12)6.24%
EPS beat(16)16
Avg EPS beat(16)6.68%
Revenue beat(2)2
Avg Revenue beat(2)2.22%
Min Revenue beat(2)0.21%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)2.47%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)1.68%
Revenue beat(12)7
Avg Revenue beat(12)0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)3.87%
PT rev (3m)5.04%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-5.23%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-2.24%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 21.08 | ||
| P/S | 2.15 | ||
| P/FCF | 44.32 | ||
| P/OCF | 24.29 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.38 |
EPS(TTM)5.74
EY4.4%
EPS(NY)6.19
Fwd EY4.74%
FCF(TTM)2.94
FCFY2.26%
OCF(TTM)5.37
OCFY4.12%
SpS60.61
BVpS45.16
TBVpS-19.57
PEG (NY)2.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 7.94% | ||
| ROCE | 5.78% | ||
| ROIC | 4.88% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 27.57% | ||
| OM | 7.97% | ||
| PM (TTM) | 5.91% | ||
| GM | 19.09% | ||
| FCFM | 4.86% |
ROA(3y)2.73%
ROA(5y)1.68%
ROE(3y)6.81%
ROE(5y)4.17%
ROIC(3y)3.68%
ROIC(5y)3.17%
ROICexc(3y)3.89%
ROICexc(5y)3.36%
ROICexgc(3y)20.34%
ROICexgc(5y)17.15%
ROCE(3y)4.37%
ROCE(5y)3.76%
ROICexcg growth 3Y14.66%
ROICexcg growth 5Y12.77%
ROICexc growth 3Y9.47%
ROICexc growth 5Y0.94%
OM growth 3Y-2.13%
OM growth 5Y-7.15%
PM growth 3Y-0.49%
PM growth 5Y-13.5%
GM growth 3Y-0.54%
GM growth 5Y-4.24%
F-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 10.52 | ||
| Debt/EBITDA | 3.6 | ||
| Cap/Depr | 74.15% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 3.32 | ||
| Cash Conversion | 66.27% | ||
| Profit Quality | 82.17% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.1 |
F-Score8
WACC9%
ROIC/WACC0.54
Cap/Depr(3y)72.3%
Cap/Depr(5y)63.03%
Cap/Sales(3y)4.25%
Cap/Sales(5y)3.96%
Profit Quality(3y)104.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.66%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%19.38%
EPS Next Y7.88%
EPS Next 2Y9.48%
EPS Next 3Y9.6%
EPS Next 5Y5.82%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.07%
Revenue Next Year5.69%
Revenue Next 2Y5.72%
Revenue Next 3Y5.84%
Revenue Next 5Y4.34%
EBIT growth 1Y84.42%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.32%
EBIT Next 3Y17.2%
EBIT Next 5Y11.86%
FCF growth 1Y-16.83%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y-9.18%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%